Stock prices of cryptocurrency-related companies have surged as the broader market reacted positively to President Joe Biden's long-awaited decision. executive order requiring US federal agencies to create a regulatory framework for digital assets, in addition to exploring a future digital dollar.
Coinbase (COIN) was up 10.5% at the close of the market, while shares of Bitcoin evangelist Michael Saylor's MicroStrategy (MSTR) posted a 6.4% gain, according to TradingView.
Blockchain-related exchange-traded funds (ETFs) also enjoyed the markets' renewed confidence in cryptocurrencies, with ProShares Bitcoin Strategy ETF (BITO) gaining 10% and Valkyrie Bitcoin Strategy ETF (BTF) closing down 10.3%. .
Cryptocurrency mining companies enjoyed the biggest gains with shares of Riot Blockchain Inc. (RIOT) rising 11.2% and Marathon Digital Holdings Inc. (MARA) rising 13.5% with Jefferies analyst (JEF ) Jonathan Peterson, reportedly restoring his buy rating for MARA in a note to clients and stating that crypto miners are likely to benefit now that the US government is โmore formally acknowledging, engaging and apparently supportingโ the digital asset industry.
While 10% swings are common in cryptocurrencies, they are unusually volatile moves in traditional markets. And despite the previous day's surge, Coinbase is still nearly 48% below its direct trading price in April of last year, while RIOT is in an even worse position, currently 76% below its most recent high. recent in February 2021.
Bitcoin (BTC) jumped 9% after details on the executive order filtered out last night, before going back to the current 5% gain.
Aside from the immediate positive price action, the executive order it was seen by most investors as a positive for the cryptocurrency industry, at least much less bad than feared. President Biden called the rise of digital assets โan opportunity to bolster American leadership in the global financial system and on the technological frontier.โ
The order did not explicitly state what kind of regulatory action could be expected, but the general sentiment from the US federal government seemed constructive, meaning the executive order could work to expand the adoption of virtual currencies within the financial system. from the USA
This was further endorsed by Treasury Secretary Janet Yellen, who said in a statement such legislation will help consumers and businesses.
"President Biden's landmark executive order calls for a coordinated and comprehensive approach to digital asset policy," Yellen said. "This approach will support responsible innovation that could result in substantial benefits to the nation, consumers and businesses."
Minnesota Congressman Tom Emmer provided an insightful breakdown of the areas the executive order missed, warning his 48,000 Twitter followers that they have no reason to expect the US government to prioritize policies for open technology, without permission or private.
Related: Crypto Could Bypass President Biden's 'Devastating' Sanctions on Russian Banks and Elites: Report
1) Decentralization is the point: The EO does not mention decentralization even once. The disintermediation of our economy will allow all Americans, regardless of circumstance, to decide their future, not a bank, big tech, or the government.
-Tom Emmer (@RepTomEmmer) March 10, 2022
However, he added that one of the most promising parts of the executive order was that it โdoes not ask the SEC to step in. SEC Chairman Gensler spent the past year intimidating crypto innovators and entrepreneurs with his unproductive regulation through public statements and compliance action. Your input is not critical.โ
Gensler weighed in on the news anyway, deciding to post his support for Biden's regulatory efforts on Twitter.
Today, @POTUS signed an Executive Order on crypto assets. I look forward to collaborating with colleagues across government to achieve important public policy goals: protecting investors and consumers, guarding against illicit activity, and helping ensure financial stability.
โGary Gensler (@GaryGensler) March 9, 2022
Gensler's tweet was met with criticism from some in the cryptocurrency community on Twitter, given their often-expressed skepticism of the digital asset industry.
Ryan Selkis, the CEO of Messario Crypto, put Gensler squarely in the crosshairs, claiming that Gensler's goals have nothing to do with protecting investors.
With any luck, you will be completely excluded from significant entry, as your personal goals have nothing to do with investor protection, market stability, or blocking illicit activity.
You say nothing here about capital formation.
Keep promoting CCP companies on cryptocurrencies!
โRyan Selkis (@twobitidiot) March 9, 2022
Pulling away, the broader stock market was up on Wednesday, with the S&P 500 posting a 2.5% gain despite continued geopolitical tension in Eastern Europe.
